Question
Help me solve this please! June 30: The annual interest rate on the mortgage payable was 7.50 percent. Interest expense for one-half month should be
Help me solve this please!
June 30: The annual interest rate on the mortgage payable was 7.50 percent. Interest expense for one-half month should be computed because the building and land were purchased and the liability incurred on June 16.
I dont know if this is needed but June 16 transaction:
- June 16: A check in the amount of $6,500 was received for services performed for Pitman Pictures.
- June 16: Byte purchased a building and the land it is on for $95,000.00 to house its repair facilities and to store computer equipment. The lot on which the building is located is valued at $15,000.00. The balance of the cost is to be allocated to the building. Check # 6004 was used to make the down payment of $9,500.00. A thirty year mortgage with an inital payment due on August 1st, was established for the balance.
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